Amazon plans to acquire Apple’s 20% stake in Globalstar, according to a newly reported FCC filing. The development follows Amazon’s earlier announcement that it is buying Globalstar. The filing describes a merger structure in which Amazon creates a subsidiary, “Grapefruit Acquisition Sub II,” to take in Globalstar’s operations before acquiring Apple’s equity interests.
Apple currently holds 20% equity and 20% voting interests in Globalstar Licensee LLC, a Globalstar subsidiary that operates the satellite system providing satellite connectivity in the U.S. Reporting across sources says Apple invested $450 million in Globalstar in 2022 to support its satellite buildout for Emergency SOS via satellite, receiving 20% equity and 85% of Globalstar’s network capacity in return.
Sources also report that Amazon’s purchase is valued at about $11.57 billion and is expected to close in 2027, subject to regulatory approval. The filings and related reporting indicate that Amazon’s Leo satellite network is intended to support existing iPhone and Apple Watch satellite features, and that Amazon and Apple will coordinate on future satellite services over Amazon’s expanded network.
